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AutoCanada Inc T.ACQ

Alternate Symbol(s):  AOCIF

AutoCanada Inc. is a Canada-based multi-location franchised automobile dealership company. It offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services. Its segments include Canadian Operations and U.S. Operations. It operates about 82 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, United States. It sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. Its Canadian Operations segment operates three used vehicle dealerships and one used vehicle auction business supporting the Used Digital Division, 13 RightRide division locations, and 11 stand-alone collision centers within its group of 27 collision centers.


TSX:ACQ - Post by User

Post by OptsyEagleon Jan 20, 2022 9:32am
157 Views
Post# 34336843

AutoCanada Offers Senior Notes

AutoCanada Offers Senior NotesSo they were in the debt markets as predicted.  It would be nice, with these announcements, if they would include the interest rate on the new notes.   I have to assume it is less then the 8.75% they were paying on the notes they will be replacing with this issue.  Those replacement bonds did not mature until 2025 so the only reason I can think of to replace them is if their interest rate is being reduced by a useful amount.   Keep in mind that a 1% reduction of interest on $300 Million of debt is $3 million dollars per year of extra profit, or almost $0.10 increase in EPS.  Let's hope the interest savings is even more.

https://ca.finance.yahoo.com/news/autocanada-announces-offering-300-million-141800437.html
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